Links in “Mortgage Lending”

The FTC will be mailing $467,000 in checks to consumers who lost money due to a mortgage relief service scheme by Jackson, Crowder & Associates and Crowder Law Group. [6/8/15]

The CFPB has fined PHH Corporation, a New Jersey lender, $109 million for illegally accepting kickbacks in the form of mortgage reinsurance premiums paid by mortgage insurance companies to a PHH subsidiary. RESPA prohibits the payment of kickbacks for the referral of mortgage services. [6/8/15]

With headlines such as "Elderly Could Lose Homes from Reverse Mortgages" (CNN Money) and "Reverse Mortgage Ads Confuse Consumers" (USA Today), it is safe to say that the CFPB's recently released study on reverse mortgage ads attracted attention. [6/8/15]

The complaint alleges that RPM Mortgage and its CEO incentivized loan originators to steer consumers into costlier mortgages. In addition to $18 million in redress to consumers and a $1 million penalty, the complaint is also seeking $1 million in civil penalties from the CEO. [6/5/15]

The CFPB released its results of a focus group study on reverse mortgage advertisements finding that many participants were left with false impressions or confusion about the product. Because of these findings, the CFPB is launching an advisory effort to warn consumers on this product. Expect more to follow with warning to reverse mortgage lenders. [6/5/15]

CFPB Director Richard Cordray issued a decision in the first appeal of a Bureau administrative enforcement proceeding against mortgage lender PHH upholding the January 2014 action. This action charged PHH with illegally referred consumers to mortgage insurers in exchange for kickbacks. PHH is required to avoid further violations and to pay $109 million to the Bureau. 6/5/15]

The CFPB filed a complaint in federal district court and is seeking a combined $20 million in penalties for redress against RPM Mortgage, Inc. and its CEO, Erwin Robert Hirt. The company was found illegally paying bonuses and higher commissions to loan originators as incentives to steer consumers into costlier mortgages. [6/5/15]

HUD unveiled a new website specifically designed for HUD-approved housing counseling agencies that covers a number of topics associated with homeownership including avoiding foreclosure and eviction and fair housing. The training is designed to help prepare housing counselors for the upcoming, mandatory HUD-certified counselor examination. [6/5/15]

It's not just tech changes that are causing headaches for lenders as the Aug. 1 new disclosure deadline approaches. Hefty fines, growing legal exposure, rising costs, and a complicated workflow add to the pain. [6/2/15]

A recent analysis reveals that the cost of mortgage lending rose again and productivity declined in 2014. This is due in part to decreases in volume (because of the shift to purchase lending from refinance activity), and the preparation for the TILA-RESPA integrated disclosures. [5/20/15]